Aiteo Eastern E&P Company Limited, a Nigerian energy firm, has entered into an agreement with Mozambique’s national petroleum company, PETROMOC, to build a refinery.
The facility will have the capacity to produce 200,000 barrels of fuel per day, enhancing Mozambique’s refining capabilities.
Mozambique’s President, Daniel Chapo, stated that the refinery project is expected to be completed within 24 months. The agreement for its construction was signed between PETROMOC and Aiteo Eastern E&P Company Limited.
“This project, to be implemented over a maximum period of 24 months, will increase storage capacity by 160,000 metric tonnes for liquid fuels and 24,000 metric tonnes for Liquefied Petroleum Gas.
“This is a transformative project that will position Mozambique as a relevant player in the liquid fuel value chain, with a positive impact on job creation, especially for our youth. The refinery will produce gasoline, diesel, naphtha, and Jet A1 with the ambition of conquering the regional market.
“These milestones reflect not only the robustness of our reserves, but above all, the environment of credibility, security, and reform that we are consolidating in attracting the private sector to boost our economy,” said the Head of State during the opening of the Mozambique mining and energy conference recently.
According to Quantum Commodity Intelligence, once completed, the refinery could potentially reshape the oil product trade flows in Africa, as Mozambique currently relies solely on imported supply.
The construction of a refinery in Mozambique could mark a turning point for the country’s energy sector, similar to Nigeria’s transformation after the Dangote refinery turned it into a regional exporter.
Currently, Mozambique relies heavily on imported refined oil products, with India being its largest supplier, followed by the UAE, Bahrain, Saudi Arabia, and Malaysia.
However, the refinery project faces a challenging timeline, as constructing an oil refinery usually takes between three and eight years.
Also, President Chapo has unveiled a new cross-border pipeline connecting the port city of Beira to Zambia, strengthening regional energy connectivity.
